Effect of Human Capital on the Entrepreneurship Gender Gap

The presence of a gender gap in entrepreneurship has been well studied in previous literature. There are various contributing factors, including differences in human capital, which has been reviewed less so than social capital. Through a career survey of Wharton MBAs, this research paper 1) examines the presence of an entrepreneurship gender gap; 2) identifies human capital variables that predict entry into entrepreneurship; and 3) determines whether or not there is a human capital gender gap. The results showed both an entrepreneurship and human capital gender gap. Furthermore, experience working at small companies, more years of experience, and experience in finance-related industries were found to be good predictors of entry. Overall, the human capital predictor model explained 6.4% of the variability of entry into entrepreneurship. Though applicability is limited due to the biases of the sample, there are tangible implications for decreasing the entrepreneurship gender gap.